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Sales and Distribution Management

Sales and Distribution Management. Mr. Ankit Bajpai ankitbajpais@gmail.com. By: Ankit Bajpai www.uptunotes.com. Nature of Personal Selling. Most salespeople are well-educated, well-trained professionals who work to build and maintain long-term relationships with customers.

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Sales and Distribution Management

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  1. Sales and Distribution Management Mr. Ankit Bajpai ankitbajpais@gmail.com By: AnkitBajpai www.uptunotes.com

  2. Nature of Personal Selling • Most salespeople are well-educated, well-trained professionals who work to build and maintain long-term relationships with customers. • The term salesperson covers a wide spectrum of positions from: • Order taker (department store salesperson) • Order getter (someone engaged in creative selling) • Missionary salesperson (building goodwill or educating buyers) By: AnkitBajpai www.uptunotes.com

  3. What is Personal Selling? Involves Two-Way, Personal Communication Between Salespeople and Individual Customers Whether: • face to face, • by telephone, • through video conferencing, • or by other means. By: AnkitBajpai www.uptunotes.com

  4. The Role of the Sales Force • Personal selling is effective because salespeople can: • probe customers to learn more about their problems, • adjust the marketing offer to fit the special needs of each customer, • negotiate terms of sale, and • build long-term personal relationships with key decision makers. By: AnkitBajpai www.uptunotes.com

  5. The Role of the Sales Force Represent the Company to Customers to Produce Company Profit • Sales Force • Serves as a Critical Link • Between a Company and its Customers Since They: Represent Customers to the Company to Produce Customer Satisfaction By: AnkitBajpai www.uptunotes.com

  6. Characteristics of Personal Selling Flexibility • Identify best prospects • Adapt to situations • Engage in dialogue Builds Relationships • Long term • Assure buyers receive appropriate services • Solves customer’s problems By: AnkitBajpai www.uptunotes.com

  7. Personal Selling Limitations • Can not reach mass audience • Expensive per contact • Numerous calls needed to generate sale • Labor intensive By: AnkitBajpai www.uptunotes.com

  8. Personal Selling Tasks Order taking • Routine • writing up orders • checking invoices • assuring prompt order processing • Suggestive selling By: AnkitBajpai www.uptunotes.com

  9. Personal Selling Tasks Order getting • Seeking out customers • Creative selling • Pioneering • Account management By: AnkitBajpai www.uptunotes.com

  10. Personal Selling Tasks • Missionary • Detailer • Goodwill • “Closers” • Cross-functional • Account service rep By: AnkitBajpai www.uptunotes.com

  11. Enthusiam Persistence Job Commitment Self-Confidence Initiative Some Traits of Good Salespeople By: AnkitBajpai www.uptunotes.com

  12. Step 1. Prospecting and Qualifying Learning As Much As Possible About a Prospective Customer Before Making a Sales Call. Identifying and Screening For Qualified Potential Customers. Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start. Telling the Product “Story” to the Buyer, and Showing the Product Benefits. Steps in the Selling Process Step 2. Pre-approach Step 3. Approach Step 4. Presentation/ Demonstration By: AnkitBajpai www.uptunotes.com

  13. Step 5. Handling Objections Seeking Out, Clarifying, and Overcoming Customer Objections to Buying. Asking the Customer for the Order. Following Up After the Sale to Ensure Customer Satisfaction and Repeat Business. Steps in the Selling Process Step 6. Closing Step 7. Follow-Up By: AnkitBajpai www.uptunotes.com

  14. Alternative Steps: Find ’em Grab ‘em Show ‘em Answer ‘em Sell ‘em Keep ‘em By: AnkitBajpai www.uptunotes.com

  15. Creative Selling Process Identify and Qualifying Prospects • Prospecting:Identifying likely new customers • Leads • Qualifying:Evaluating a prospect’s potential By: AnkitBajpai www.uptunotes.com

  16. Creative Selling Process Approaching the Prospect • Contact • Rapport • “Only one chance to make a first impression” By: AnkitBajpai www.uptunotes.com

  17. Creative Selling Process Sales Presentation • Persuasive communication • Attention • Interest • Desire • “Tell the product’s story” By: AnkitBajpai www.uptunotes.com

  18. Creative Selling Process Handling Objections • Questions • Reservations • Understand Concern • Counterarguments • Acknowledge concern • Clues to process By: AnkitBajpai www.uptunotes.com

  19. Creative Selling Process Closing the Sale • Closing signals • Trial close • Ask for the sale By: AnkitBajpai www.uptunotes.com

  20. Creative Selling Process Following Up • Commitments met • Shipment • Performance • Reinforce relationship • Satisfied customers rebuy & recommend By: AnkitBajpai www.uptunotes.com

  21. Planning Organizing Controlling Directing Sales Management Setting objectives Organizing activities Recruit, select, train, develop, manage, & motivate Motivate, evaluate, & control By: AnkitBajpai www.uptunotes.com

  22. Organizing Sales Activities Sales Territory: • Geographic divisions • Customer types • Product lines • Selling task By: AnkitBajpai www.uptunotes.com

  23. Vice-President Marketing Regional Sales Regional Sales Manager Manager District Sales District Sales District Sales District Sales Manager Manager Manager Manager Sales Rep Sales Rep Sales Rep Sales Rep California Pacific NW Southeast Northeast Geographic Division By: AnkitBajpai www.uptunotes.com

  24. Vice-President Sales New Accounts Existing Accounts Manager Manager New Account New Account Existing Existing #1 #2 Account #1 Account #2 Customer Type By: AnkitBajpai www.uptunotes.com

  25. Vice-President Sales Snack Foods Beverages Sales Manager Sales Manager Sales Rep Sales Rep Sales rep Sales Rep Eastern Region West’n Region Eastern Region West’n Region Product Line By: AnkitBajpai www.uptunotes.com

  26. Directing the Sales Force • Recruiting and selecting • Training & develop • Compensating • Motivating By: AnkitBajpai www.uptunotes.com

  27. Compensation Methods Straight salary or wage Salary plus commission Straight commission Quota-bonus plan Commission with draw By: AnkitBajpai www.uptunotes.com

  28. Evaluation and Control • Required reports • Measurement against plan or sales standards • Expense control • Productivity • New account development By: AnkitBajpai www.uptunotes.com

  29. Ethical Issues • Kickbacks, bribes and “gifts” • Price discrimination • Cheating on expense accounts • Misrepresentation By: AnkitBajpai www.uptunotes.com

  30. Distribution Channel Design and Management By: AnkitBajpai www.uptunotes.com

  31. Distribution’s Function • The major purpose of marketing is to satisfy human needs by delivering products of various types to buyers when and where they want them and at a reasonable cost. • The “when and where” is the function of Distribution By: AnkitBajpai www.uptunotes.com

  32. What is a Distribution Channel? • A set of interdependent organizations (intermediaries) involved in the process of making a product or service available for use or consumption by the consumer or business user. • Marketing Channel decisions are among the most important decisions that management faces and will directly affect every other marketing decision. By: AnkitBajpai www.uptunotes.com

  33. Why are Marketing Intermediaries Used? • The use of intermediaries results from their greater efficiency in making goods available to target markets. • Offer the firm more than it can achieve on it’s own through the intermediaries: • Contacts, • Experience, • Specialization, • Scale of operation. • Purpose: match supply from producers to demand from consumers. By: AnkitBajpai www.uptunotes.com

  34. PRODUCER CONSUMER DISTRIBUTION Distribution By: AnkitBajpai www.uptunotes.com

  35. Information Distribution Channel Functions Transfer Communication Payments Negotiation Physical Distribution Ordering Risk Taking Financing By: AnkitBajpai www.uptunotes.com

  36. ANUFACTURER ONSUMER GENT ETAILER HOLESALER Typical Channels of Distribution By: AnkitBajpai www.uptunotes.com

  37. Direct Wholesaler Agent Business-to-Business Channels By: AnkitBajpai www.uptunotes.com

  38. Disintermediation Infomediaries & Vertical Exchange Business-to-Business Channel Trends By: AnkitBajpai www.uptunotes.com

  39. Wholesaler Retailer Consumer Consumer Conventional Distribution Channel vs. Vertical Marketing Systems Vertical marketing channel Conventional marketing channel Manufacturer Manufacturer Wholesaler Retailer By: AnkitBajpai www.uptunotes.com

  40. Corporate Common Ownership at Different Levels of the Channel Administered Leadership is Assumed by One or a Few Dominant Members Contractual Contractual Agreement Among Channel Members Types of Vertical Marketing Systems By: AnkitBajpai www.uptunotes.com

  41. Vertical Marketing Systems • Corporate systems - total ownership • Contractual - legal relationships • Administered - strong leadership By: AnkitBajpai www.uptunotes.com

  42. Planning the Channel of Distribution • Determining the structure • Marketing mix strategy • Organizational resources • External environmental factors • Market characteristics • Consumer preferences and behavior • The nature and availability of Intermediaries • Other environmental factors By: AnkitBajpai www.uptunotes.com

  43. Customers’ Desired Service Levels • Lot size • Waiting time • Spatial convenience • Product variety • Service backup By: AnkitBajpai www.uptunotes.com

  44. Steps in Distribution Planning By: AnkitBajpai www.uptunotes.com

  45. Intensive Distribution Distribution Intensity Exclusive Distribution Selective Distribution Choosing a Distribution System By: AnkitBajpai www.uptunotes.com

  46. Retailer Retailer Retailer Retailer Retailer Retailer Retailer Retailer Retailer Retailer Retailer Retailer Retailer Retailer Retailer Intensive Distribution Seeks to obtain maximum product exposure at the retail level Producer By: AnkitBajpai www.uptunotes.com

  47. Retailer Retailer Retailer Retailer Retailer Retailer Selective Distribution Producer Product is sold in a limited number of outlets By: AnkitBajpai www.uptunotes.com

  48. Retailer Exclusive Distribution Producer Product is sold in only one outlet in a given area By: AnkitBajpai www.uptunotes.com

  49. Selecting Channel Partners Managing the Channel of Distribution Channel Leader Power Developing Distribution Tactics Distribution Channels & the Marketing Mix Economic Power Reward or Coercive Power Legitimate Power By: AnkitBajpai www.uptunotes.com

  50. Physical Distribution Order Processing Received Processed Shipped Inventory Control When to order How much to order Physical DistributionFunctions Warehousing Number Needed Where What Type Transportation Rail, Water, Trucks, Air, Pipeline, Internet Materials Handling Moving Products Into, Within, and Out of Warehouses By: AnkitBajpai www.uptunotes.com

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